copyright atomic dog publishing, 2002 the international marketing communications

Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002

The International Marketing Communications


Chapter Objectives• Describe the international promotional mix and the

international communication process

• Explore the international advertising formats and practices around the world

• Describe the international advertising and media infrastructure and infrastructure-related challenges in different markets

• Describe advertising strategies and budgeting decisions and offer examples of international applications


International Promotional Mix• Advertising

• Salesforce Management

• Sales Promotion

• Public Relations

• Publicity


International Promotional Mix, continuedUnderstanding the norms, motivations, attitudes, interests, and opinions of the target market is crucial to company success in marketing to and communicating with different cultures around the globe.


ProductPricePromotionPlace

What does this picture depict?


Marketing Communication Process

Effective communication requires 3 elements connected by a message channel: The sender The message The receiver

Encoding- converting message into symbolic form properly understood by the receiver

Decoding- dependent on receiver’s ability to transform message symbols back into thought

Noise- Extraneous stimuli that interfere with transfer of message through message channel


International Communication Process

SENDER RECEIVERMEDIUM

Sponsor (sender) encodes message and sends it through the channel (medium) to the international consumer (receiver); the international consumer receives the message and decodes it into meaningful information.


Marketing Communication Process

Noise

Sender Message MessageChannel Receiver

CommunicationOutcomeFeedback


Non-Personal Communication Media• Print media

• Broadcast media

• Interactive media Not widely available in developing

countries


Personal Media• Salespeople

• Telemarketers

• Trade show and exhibits Individuals can interact with knowledgeable company

representatives


International Communication Challenges• Media infrastructure

• Unreliable mail

• Limited broadcast media

• Media is not use for advertising• Translation deficiencies—meanings intended may not

be the meanings conveyed


Lessen Communication Challenges1) Hire research firms to evaluate message in multiple

international environments

2) Evaluate effectiveness communication in attracting target market attention

3) Evaluate effectiveness communication in getting consumers to purchase the product


AdvertisingA nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media.


Media Infrastructure• Availability

• Reliability

• Restrictions

• Costs


Media Reliability• Extent to which the existing media reliably reach the

target consumer Print lag times Poor quality Off-air Television


Media Restrictions• Limitations imposed by existing media

Limiting the number and types of advertisements Cultural differences Clustered ads Media scheduling


Media Costs• Differ greatly between countries, and even within

a particular country Income per capita of target market Competition for media Firm status Translation costs


Various International Formats, Features, and Trends

• Posters on Kiosks and Fences

• Advertising on the Sides of Private Homes

• Advertising on Plastic Shopping Bags

• Advertising on Outdoor Umbrellas

• Billboards


Global Media• Television

CNN, Bloomberg, MTV Tonight Show, Disney Fox Broadcasting, 20th Century

Fox, 20th Century Television


Infomercials & TV Shopping• Shopping

QVC, Home Shopping Network Home Order Television


Using English In Local Advertisements• English:

Requires less space in print and broadcasting time Conveys a cosmopolitan attitude Endows a product or service with status


Product Placement

• U.S. movies’ box-office receipts are steadily increasing

• U.S. films are very successful abroad

Placing brands in movies and television programming with the purpose of promoting the products to viewers


Advertising Regulations• Comparative Advertising

• Advertising to Children

• Advertising Vice Products

• Other Regulations: Vary by country; examples:

- France: Requirement to keep the French language pure- Islamic countries: Ban the use of sex in advertising


International Advertising Infrastructure• Develop ads in-house

• Local advertising agencies

• Home-country agencies

• International agencies Top agencies are:

- Omnicom Group- Interpublic Group- Young & Rubicam (U.S.) - WPP Group (U.K.)- Dentsu, Inc. (Japan)


International Advertising Strategy• Standardization vs. Adaptation

Standardization reduces costs: No duplication of effort for each market

Individual campaigns delay product launches Consumers increasingly share similar frames of references

with regard to products and consumption


In Italy, where James Bond is considered too uptight, ads ignored star and featured a convict with the line: “You better have a good reason to miss the next James Bond film.”

Is this example of Standardized or Adapted Advertising?


Bruce Almighty in MalaysiaMotorists pass a billboard advertising a billboard Jim Carrey’s latest movie “Bruce Almighty: along a highway in Kuala Lumpur, Malaysia. Government censors have postponed the Malaysian release of the movie pending a decision on whether to ban it for trivializing the subject of God.” AP Aug. 10, 2003


Message Standardize or Adapt?

“Cavity reducing fluoride toothpaste sells well in the U.S. where healthy teeth care perceived as important, but has limited appeal in markets such as Great Britain and France where the reason for buying toothpaste is breath control.”


Message / Positioning: Standardize or Adapt?

• Differing culture, values and purchase motivations affects advertising message• E.g. In Germany, bicycle is

primary source of transportation; promote it as reliable, optimal performance regardless of weather

• In U.S., primarily used for recreation, focus on weekend fun.


Standardize or adapt advertising?• Standardize?

• Reduce costs• Accelerates product launches• Consumers preferences and product references

may becoming more similar• Increases control, especially where local resources

are questionable


Barriers to Standardization• Communication infrastructure

• Agencies might not serve a particular market

• Consumer literacy

• Legal restrictions and self-regulation

• Differing values and purchase motivations

• Attitudes toward product country of origin

• Promotional mix elements


Budgeting Decisions• Objective-and-Task Method

1. Identify advertising goals

2. Conduct research

3. Determine cost of achieving goals

4. Allocate the necessary sum

• Percent-of-Sales Method Base budget on past or projected sales


Budgeting Decisions, continued• Historical Method

Base budget on past expenditures giving more weight to recent expenditures

• Competitive Parity Use international competitors’ budgets as benchmark

• Executive-judgment method Use collective executive opinion

• All-you-can-afford Best suits small and medium firms


Chapter Summary• Addressed the international promotional mix and the

international communication process

• Explored international advertising formats and practices around the world

• Described international advertising and media infrastructure, and infrastructure-related challenges in different markets

• Addressed advertising strategies and budgeting decisions

copyright atomic dog publishing, 2002 the international marketing communications

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